
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)[306(a)]]
[Document affected by Public Law 107-16 Section 102(a)]
[Document affected by Public Law 106-554 Section 1(a)(7)[306(b)]]
[Document affected by Public Law 107-16 Section 102(b)]
[CITE: 26USC151]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
               PART V--DEDUCTIONS FOR PERSONAL EXEMPTIONS
 
Sec. 151. Allowance of deductions for personal exemptions


(a) Allowance of deductions

    In the case of an individual, the exemptions provided by this 
section shall be allowed as deductions in computing taxable income.

(b) Taxpayer and spouse

    An exemption of the exemption amount for the taxpayer; and an 
additional exemption of the exemption amount for the spouse of the 
taxpayer if a joint return is not made by the taxpayer and his spouse, 
and if the spouse, for the calendar year in which the taxable year of 
the taxpayer begins, has no gross income and is not the dependent of 
another taxpayer.

(c) Additional exemption for dependents

                           (1) In general

        An exemption of the exemption amount for each dependent (as 
    defined in section 152)--
            (A) whose gross income for the calendar year in which the 
        taxable year of the taxpayer begins is less than the exemption 
        amount, or
            (B) who is a child of the taxpayer and who (i) has not 
        attained the age of 19 at the close of the calendar year in 
        which the taxable year of the taxpayer begins, or (ii) is a 
        student who has not attained the age of 24 at the close of such 
        calendar year.

     (2) Exemption denied in case of certain married dependents

        No exemption shall be allowed under this subsection for any 
    dependent who has made a joint return with his spouse under section 
    6013 for the taxable year beginning in the calendar year in which 
    the taxable year of the taxpayer begins.

                          (3) Child defined

        For purposes of paragraph (1)(B), the term ``child'' means an 
    individual who (within the meaning of section 152) is a son, 
    stepson, daughter, or stepdaughter of the taxpayer.

                         (4) Student defined

        For purposes of paragraph (1)(B)(ii), the term ``student'' means 
    an individual who during each of 5 calendar months during the 
    calendar year in which the taxable year of the taxpayer begins--
            (A) is a full-time student at an educational organization 
        described in section 170(b)(1)(A)(ii); or
            (B) is pursuing a full-time course of institutional on-farm 
        training under the supervision of an accredited agent of an 
        educational organization described in section 170(b)(1)(A)(ii) 
        or of a State or political subdivision of a State.

    (5) Certain income of handicapped dependents not taken into 
                                   account

        (A) In general

            For purposes of paragraph (1)(A), the gross income of an 
        individual who is permanently and totally disabled shall not 
        include income attributable to services performed by the 
        individual at a sheltered workshop if--
                (i) the availability of medical care at such workshop is 
            the principal reason for his presence there, and
                (ii) the income arises solely from activities at such 
            workshop which are incident to such medical care.

        (B) Sheltered workshop defined

            For purposes of subparagraph (A), the term ``sheltered 
        workshop'' means a school--
                (i) which provides special instruction or training 
            designed to alleviate the disability of the individual, and
                (ii) which is operated by--
                    (I) an organization described in section 501(c)(3) 
                and exempt from tax under section 501(a), or
                    (II) a State, a possession of the United States, any 
                political subdivision of any of the foregoing, the 
                United States, or the District of Columbia.

        (C) Permanent and total disability defined

            An individual shall be treated as permanently and totally 
        disabled for purposes of this paragraph if such individual would 
        be so treated under paragraph (3) of section 22(e).

                  (6) Treatment of missing children

        (A) In general

            Solely for the purposes referred to in subparagraph (B), a 
        child of the taxpayer--
                (i) who is presumed by law enforcement authorities to 
            have been kidnapped by someone who is not a member of the 
            family of such child or the taxpayer, and
                (ii) who was (without regard to this paragraph) the 
            dependent of the taxpayer for the portion of the taxable 
            year before the date of the kidnapping,

        shall be treated as a dependent of the taxpayer for all taxable 
        years ending during the period that the child is kidnapped.

        (B) Purposes

            Subparagraph (A) shall apply solely for purposes of 
        determining--
                (i) the deduction under this section,
                (ii) the credit under section 24 (relating to child tax 
            credit), and
                (iii) whether an individual is a surviving spouse or a 
            head of a household (such terms are defined in section 2).

        (C) Comparable treatment for earned income credit

            For purposes of section 32, an individual--
                (i) who is presumed by law enforcement authorities to 
            have been kidnapped by someone who is not a member of the 
            family of such individual or the taxpayer, and
                (ii) who had, for the taxable year in which the 
            kidnapping occurred, the same principal place of abode as 
            the taxpayer for more than one-half of the portion of such 
            year before the date of the kidnapping,

        shall be treated as meeting the requirement of section 
        32(c)(3)(A)(ii) with respect to a taxpayer for all taxable years 
        ending during the period that the individual is kidnapped.

        (D) Termination of treatment

            Subparagraphs (A) and (C) shall cease to apply as of the 
        first taxable year of the taxpayer beginning after the calendar 
        year in which there is a determination that the child is dead 
        (or, if earlier, in which the child would have attained age 18).

(d) Exemption amount

    For purposes of this section--

                           (1) In general

        Except as otherwise provided in this subsection, the term 
    ``exemption amount'' means $2,000.

         (2) Exemption amount disallowed in case of certain 
                                 dependents

        In the case of an individual with respect to whom a deduction 
    under this section is allowable to another taxpayer for a taxable 
    year beginning in the calendar year in which the individual's 
    taxable year begins, the exemption amount applicable to such 
    individual for such individual's taxable year shall be zero.

                            (3) Phaseout

        (A) In general

            In the case of any taxpayer whose adjusted gross income for 
        the taxable year exceeds the threshold amount, the exemption 
        amount shall be reduced by the applicable percentage.

        (B) Applicable percentage

            For purposes of subparagraph (A), the term ``applicable 
        percentage'' means 2 percentage points for each $2,500 (or 
        fraction thereof) by which the taxpayer's adjusted gross income 
        for the taxable year exceeds the threshold amount. In the case 
        of a married individual filing a separate return, the preceding 
        sentence shall be applied by substituting ``$1,250'' for 
        ``$2,500''. In no event shall the applicable percentage exceed 
        100 percent.

        (C) Threshold amount

            For purposes of this paragraph, the term ``threshold 
        amount'' means--
                (i) $150,000 in the case of a joint return or a 
            surviving spouse (as defined in section 2(a)),
                (ii) $125,000 in the case of a head of a household (as 
            defined in section 2(b),\1\
---------------------------------------------------------------------------
    \1\ So in original. A closing parenthesis probably should precede 
the comma.
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                (iii) $100,000 in the case of an individual who is not 
            married and who is not a surviving spouse or head of a 
            household, and
                (iv) $75,000 in the case of a married individual filing 
            a separate return.

        For purposes of this paragraph, marital status shall be 
        determined under section 7703.

        (D) Coordination with other provisions

            The provisions of this paragraph shall not apply for 
        purposes of determining whether a deduction under this section 
        with respect to any individual is allowable to another taxpayer 
        for any taxable year.

                      (4) Inflation adjustments

        (A) Adjustment to basic amount of exemption

            In the case of any taxable year beginning in a calendar year 
        after 1989, the dollar amount contained in paragraph (1) shall 
        be increased by an amount equal to--
                (i) such dollar amount, multiplied by
                (ii) the cost-of-living adjustment determined under 
            section 1(f)(3) for the calendar year in which the taxable 
            year begins, by substituting ``calendar year 1988'' for 
            ``calendar year 1992'' in subparagraph (B) thereof.

        (B) Adjustment to threshold amounts for years after 1991

            In the case of any taxable year beginning in a calendar year 
        after 1991, each dollar amount contained in paragraph (3)(C) 
        shall be increased by an amount equal to--
                (i) such dollar amount, multiplied by
                (ii) the cost-of-living adjustment determined under 
            section 1(f)(3) for the calendar year in which the taxable 
            year begins, by substituting ``calendar year 1990'' for 
            ``calendar year 1992'' in subparagraph (B) thereof.

(e) Identifying information required

    No exemption shall be allowed under this section with respect to any 
individual unless the TIN of such individual is included on the return 
claiming the exemption.

(Aug. 16, 1954, ch. 736, 68A Stat. 42; Pub. L. 91-172, title VIII, 
Sec. 801(a)(1), (b)(1), (c)(1), (d)(1), title IX, Sec. 941(b), Dec. 30, 
1969, 83 Stat. 675, 676, 726; Pub. L. 92-178, title II, Sec. 201(a)(1), 
(b)(1), (c), Dec. 10, 1971, 85 Stat. 510, 511; Pub. L. 94-455, title 
XIX, Sec. 1901(a)(23), Oct. 4, 1976, 90 Stat. 1767; Pub. L. 95-600, 
title I, Sec. 102(a), Nov. 6, 1978, 92 Stat. 2771; Pub. L. 97-34, title 
I, Sec. 104(c), Aug. 13, 1981, 95 Stat. 189; Pub. L. 98-369, div. A, 
title IV, Sec. 426(a), July 18, 1984, 98 Stat. 804; Pub. L. 99-514, 
title I, Sec. 103, title XVIII, Sec. 1847(b)(3), Oct. 22, 1986, 100 
Stat. 2102, 2856; Pub. L. 100-647, title VI, Sec. 6010(a), Nov. 10, 
1988, 102 Stat. 3691; Pub. L. 101-508, title XI, Secs. 11101(d)(1)(F), 
11104(a), Nov. 5, 1990, 104 Stat. 1388-405, 1388-407; Pub. L. 102-318, 
title V, Sec. 511, July 3, 1992, 106 Stat. 300; Pub. L. 103-66, title 
XIII, Secs. 13201(b)(3)(G), 13205, Aug. 10, 1993, 107 Stat. 459, 462; 
Pub. L. 104-188, title I, Secs. 1615(a)(1), 1702(a)(2), Aug. 20, 1996, 
110 Stat. 1853, 1868; Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 306(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A-634.)

      Personal Exemption Adjustment for Tax Years Beginning in 2001

        For adjustment and phaseout of personal exemption under 
    subsection (d) of this section for tax years beginning in 2001, see 
    section 3.09 of Revenue Procedure 2001-13, set out as a note under 
    section 1 of this title.


                               Amendments

    2000--Subsec. (c)(6). Pub. L. 106-554 added par. (6).
    1996--Subsec. (d)(3)(C)(i). Pub. L. 104-188, Sec. 1702(a)(2), 
substituted ``joint return'' for ``joint of a return''.
    Subsec. (e). Pub. L. 104-188, Sec. 1615(a)(1), added subsec. (e).
    1993--Subsec. (d)(3)(E). Pub. L. 103-66, Sec. 13205, struck out 
heading and text of subpar. (E). Text read as follows: ``This paragraph 
shall not apply to any taxable year beginning after December 31, 1996.''
    Subsec. (d)(4)(A)(ii), (B)(ii). Pub. L. 103-66, Sec. 13201(b)(3)(G), 
substituted ``1992'' for ``1989''.
    1992--Subsec. (d)(3)(E). Pub. L. 102-318 substituted ``1996'' for 
``1995''.
    1990--Subsec. (d). Pub. L. 101-508, Sec. 11104(a), amended subsec. 
(d) generally. Prior to amendment, subsec. (d) read as follows: ``For 
purposes of this section--
    ``(1) In general.--Except as provided in paragraph (2), the term 
`exemption amount' means--
        ``(A) $1,900 for taxable years beginning during 1987,
        ``(B) $1,950 for taxable years beginning during 1988, and
        ``(C) $2,000 for taxable years beginning after December 31, 
    1988.
    ``(2) Exemption amount disallowed in the case of certain 
dependents.--In the case of an individual with respect to whom a 
deduction under this section is allowable to another taxpayer for a 
taxable year beginning in the calendar year in which the individual's 
taxable year begins, the exemption amount applicable to such individual 
for such individual's taxable year shall be zero.
    ``(3) Inflation adjustment for years after 1989.--In the case of any 
taxable year beginning in a calendar year after 1989, the dollar amount 
contained in paragraph (1)(C) shall be increased by an amount equal to--
        ``(A) such dollar amount, multiplied by
        ``(B) the cost-of-living adjustment determined under section 
    1(f)(3), for the calendar year in which the taxable year begins, by 
    substituting `calendar year 1988' for `calendar year 1987' in 
    subparagraph (B) thereof.''
    Subsec. (d)(3)(B). Pub. L. 101-508, Sec. 11101(d)(1)(F), substituted 
``1989'' for ``1987''.
    1988--Subsec. (c)(1)(B)(ii). Pub. L. 100-647 inserted ``who has not 
attained the age of 24 at the close of such calendar year'' after 
``student''.
    1986--Subsec. (c). Pub. L. 99-514, Sec. 103(b), redesignated subsec. 
(e) as (c) and struck out former subsec. (c) which provided for an 
additional exemption for taxpayer or spouse aged 65 or more.
    Subsec. (d). Pub. L. 99-514, Sec. 103(b), redesignated subsec. (f) 
as (d) and struck out former subsec. (d) which provided for an 
additional exemption for blindness of taxpayer or spouse.
    Subsec. (e). Pub. L. 99-514, Sec. 103(b), redesignated subsec. (e) 
as (c).
    Pub. L. 99-514, Sec. 1847(b)(3), substituted ``section 22(e)'' for 
``section 37(e)'' in par. (5)(C).
    Subsec. (f). Pub. L. 99-514, Sec. 103(b), redesignated subsec. (f) 
as (d).
    Pub. L. 99-514, Sec. 103(a), amended subsec. (f) generally. Prior to 
amendment, subsec. (f) read as follows: ``For purposes of this section, 
the term `exemption amount' means, with respect to any taxable year, 
$1,000 increased by an amount equal to $1,000 multiplied by the cost-of-
living adjustment (as defined in section 1(f)(3)) for the calendar year 
in which the taxable year begins. If the amount determined under the 
preceding sentence is not a multiple of $10, such amount shall be 
rounded to the nearest multiple of $10 (or if such amount is a multiple 
of $5, such amount shall be increased to the next highest multiple of 
$10).''
    1984--Subsec. (e)(5). Pub. L. 98-369 added par. (5).
    1981--Subsecs. (b), (c), (d)(1), (2), (e)(1). Pub. L. 97-34, 
Sec. 104(c)(1), substituted ``the exemption amount'' for ``$1,000'' 
wherever appearing.
    Subsec. (f). Pub. L. 97-34, Sec. 104(c)(2), added subsec. (f).
    1978--Pub. L. 95-600 increased exemption from $750 to $1,000 with 
respect to taxable years beginning after Dec. 31, 1978.
    1976--Subsec. (e)(4). Pub. L. 94-455 struck out ``and educational 
institution'' after ``Student'' in heading, substituted in subpars. (A) 
and (B) ``organization described in section 170(b)(1)(A)(ii)'' for 
``institution'', and struck out provisions following subpar. (B) 
defining educational institution.
    1971--Pub. L. 92-178 increased exemption from $650 to $675 with 
respect to taxable years beginning after Dec. 31, 1970, and before Jan. 
1, 1972, and from $675 to $750 with respect to taxable years beginning 
after Dec. 31, 1971.
    1969--Pub. L. 91-172, Sec. 801(a)(1), (b)(1), (c)(1), (d)(1), 
increased exemption from $600 to $625 with respect to taxable years 
beginning after Dec. 31, 1969, and before Jan. 1, 1971, from $625 to 
$650 for taxable years beginning after Dec. 31, 1970, and before Jan. 1, 
1972, from $650 to $700 for taxable years beginning after Dec. 31, 1971, 
and before Jan. 1, 1973, and from $700 to $750 for taxable years 
beginning after Dec. 31, 1972.
    Subsecs. (b), (c), Pub. L. 91-172, Sec. 941(b), substituted ``if a 
joint return is not made by the taxpayer and his spouse'' for ``if a 
separate return is made by the taxpayer''.


                    Effective Date of 2000 Amendment

    Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 306(b)], Dec. 21, 
2000, 114 Stat. 2763, 2763A-635, provided that: ``The amendment made by 
this section [amending this section] shall apply to taxable years ending 
after the date of the enactment of this Act [Dec. 21, 2000].''


                    Effective Date of 1996 Amendment

    Amendment by section 1615(a)(1) of Pub. L. 104-188 applicable with 
respect to returns the due date for which, without regard to extensions, 
is on or after the 30th day after Aug. 20, 1996, with special rule for 
1995 and 1996, see section 1615(d) of Pub. L. 104-188, set out as a note 
under section 21 of this title.
    Amendment by section 1702(a)(2) of Pub. L. 104-188 effective, except 
as otherwise expressly provided, as if included in the provision of the 
Revenue Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which 
such amendment relates, see section 1702(i) of Pub. L. 104-188, set out 
as a note under section 38 of this title.


                    Effective Date of 1993 Amendment

    Amendment by section 13201(b)(3)(G) of Pub. L. 103-66 applicable to 
taxable years beginning after Dec. 31, 1992, see section 13201(c) of 
Pub. L. 103-66, set out as a note under section 1 of this title.


                    Effective Date of 1990 Amendment

    Amendment by section 11101(d)(1)(F) of Pub. L. 101-508 applicable to 
taxable years beginning after Dec. 31, 1990, see section 11101(e) of 
Pub. L. 101-508, set out as a note under section 1 of this title.
    Amendment by section 11104(a) of Pub. L. 101-508 applicable to 
taxable years beginning after Dec. 31, 1990, see section 11104(c) of 
Pub. L. 101-508, set out as a note under section 1 of this title.


                    Effective Date of 1988 Amendment

    Section 6010(b) of Pub. L. 100-647 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to taxable 
years beginning after December 31, 1988.''


                    Effective Date of 1986 Amendment

    Amendment by section 103 of Pub. L. 99-514 applicable to taxable 
years beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99-
514, set out as a note under section 1 of this title.
    Amendment by section 1847(b)(3) of Pub. L. 99-514 effective, except 
as otherwise provided, as if included in the provisions of the Tax 
Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment 
relates, see section 1881 of Pub. L. 99-514, set out as a note under 
section 48 of this title.


                    Effective Date of 1984 Amendment

    Section 426(b) of Pub. L. 98-369 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to taxable years 
beginning after December 31, 1984.''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable to taxable years beginning 
after Dec. 31, 1984, see section 104(e) of Pub. L. 97-34, set out as a 
note under section 1 of this title.


                    Effective Date of 1978 Amendment

    Section 102(d)(1) of Pub. L. 95-600 provided that: ``The amendments 
made by subsections (a) and (b) [amending this section and sections 6012 
and 6013 of this title] shall apply to taxable years beginning after 
December 31, 1978.''


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-455 applicable with respect to taxable years 
beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, 
set out as a note under section 2 of this title.


                    Effective Date of 1971 Amendment

    Section 201(a), (b) of Pub. L. 92-178 provided in part that the 
increase in exemption from $650 to $675 was effective with respect to 
taxable years beginning after Dec. 31, 1970, and before Jan. 1, 1972, 
and from $675 to $750 was effective with respect to taxable years 
beginning after Dec. 31, 1971.


                    Effective Date of 1969 Amendment

    Section 801(a)(1) of Pub. L. 91-172 provided in part that the 
increase in exemption from $600 to $625 is effective with respect to 
taxable years beginning after Dec. 31, 1969, and before Jan. 1, 1971.
    Section 801(b)(1) of Pub. L. 91-172 provided in part that the 
increase in the exemption from $625 to $650 is effective with respect to 
taxable years beginning after Dec. 31, 1970, and before Jan. 1, 1972.
    Section 941(c) of Pub. L. 91-172 provided that: ``The amendments 
made by subsections (a) [amending section 6012 of this title] and (b) 
[amending this section] shall apply to taxable years beginning after 
December 31, 1969.''


                                 Repeals

    Section 801(c)(1), (d)(1) of Pub. L. 91-172 provided for an increase 
in the personal exemption to $700, effective with respect to taxable 
years beginning after Dec. 31, 1971, and before Jan. 1, 1973, and to 
$750, effective with respect to taxable years beginning after Dec. 31, 
1972, prior to repeal by section 201(c) of Pub. L. 92-178.


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1, 2, 21, 24, 25A, 32, 56, 
63, 72, 129, 132, 135, 152, 153, 172, 220, 221, 443, 642, 703, 773, 873, 
874, 891, 904, 931, 933, 1212, 1402, 2032A, 3402, 6012, 6013, 6050S, 
6213, 6334, 7703 of this title.
